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November 22, 2002



Japan's Safeguard Measures on Chinese Vegetables Kick-in

Temporary Japanese curbs on cheap vegetable imports, mainly from China, designed to protect domestic farmers, came into force Monday.

"The safeguard measures started today," said an official at the farm ministry. "They will last for 200 days, as announced previously."

The temporary measures are to be imposed on imports of scallion, shiitake mushrooms and tatami rushes.

Under the curbs Japan will continue to charge tariffs ranging from 3.0 percent to 6.0 percent on imports of the vegetables up to their average volume for the three years from 1997 to 1999.

On imports above that level, tariffs of between 106 percent for tatami rushes and 266 percent for shiitake mushrooms will be levied on the products to bring them into line with their domestically-produced rivals.

It is the first time Japan has imposed curbs on imports under the World Trade Organisation's safeguard mechanism.

The WTO allows members to impose temporary quotas on imports for some four years to give a specific industry time to adjust to intense competition from abroad.

Several other industries have asked or are considering asking the government for similar measures.

The Japanese government is studying the effect on the Japanese market of cheap towel imports from Asia -- mainly from China -- in response to pleas from domestic towel producers that claim they have been hurt by a surge of cheaper imports.

An industry association representing necktie manufacturers has been conducting its own investigation into the impact of cheap imports in Japan.

Some political and business leaders have voiced concern that Japan is becoming too protective of domestic concerns.

"Tariffs on imports of agricultural products from China are necessary but we should be cautious about such activity spreading to other industrial products," Finance Minister Kiichi Miyazawa said earlier this month.

"The free-market economy is our country's (guiding) principle."

China has criticized the Japanese decision over the vegetable imports, saying trade disputes should not be resolved with "negative measures." It has threatened that it would consider tit-for-tat trade sanctions if Japan invoked the curbs.

In a similar move, the Japanese government started an investigation Monday into alleged dumping of polyester fibre imports from South Korea and Taiwan.

"The investigation started today, as a separate matter from the vegetable safeguard measures," a finance ministry spokesman said.

(China Daily 04/23/2001)

In This Series
Import Curbs Sound Alarm Bell

Ban Harmful to Sino-Japanese Trade Ties

Japan's Restriction on Chinese Towel Imports Firmly Opposed

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